With the cost of living soaring, interest rates rising and house prices falling, Budget 2022 aimed to deliver a little something to help the average household.
In Budget 2022, the Government is investing an average of $5.9 billion per year in new operating spending, with further initiatives funded from Budget 2023 and 2024 allowances as a result of new multi-year funding approaches.
So what’s in it for you?
1. Support for rising household prices
You get to enjoy at least some of the benefits of the latest Wellbeing Budget, particularly the extended fuel excise and road user charge reductions. Those last for another two months, as do the half-price public transport fares.
For those earning under $70,000 a year, there is a one-off $350 cost-of-living payment, which will be delivered as $27 per week for three months. Lower-income households will have access to more subsidies for insulation and heating, and in the Emissions Reduction plan, could be partly funded into a low-emission vehicle.
Child support payments should also run a little more smoothly for single parents.
2. First home buyers get a small boost
The house price caps for First Home Loans have been completely removed, while the price caps for First Home Grants have been increased significantly.
This should help if you, or someone you know, is on the brink of being able to afford a home but not quite able to get over the final affordability hurdle. Hopefully this will support more Kiwis into their own houses.
3. Funding for businesses
The Budget is light on business spending, but does include a new $100 million Business Growth Fund for SMEs. This could be instrumental in addressing the ongoing difficulty of business lending for SMEs.
The Government is also continuing the Regional Strategic Partnership Fund and putting some money towards designing its earlier-announced income insurance scheme. Apprenticeship schemes are getting an additional $230 million in funding, which may eventually help address some of the current skills shortage in our labour markets.
How do you get access to new funding?
We’ll be keeping a close eye on exactly how people can receive the $350 cost-of-living payment or any of the other funding opportunities from this Budget. We can talk you through what you might be entitled to, and help you figure out how this will affect your business or your staff members.